Bangladesh's central bank issued new risk management guidelines for lenders amid increased risk in the banking industry.

Bangladesh Bank on Oct. 8 released a revised version of core risk management guidelines for banks to make sure that they have a sound risk management culture in place.

Under the revised norms, lenders must prepare a comprehensive set of risk management guidelines, which they must review at least once a year to adapt to changes in the market environment. Banks are also required to appoint a chief risk officer as the head of the risk management department.

Bangladesh Bank also tasked lenders with preparing soft copies of their risk management reports and providing board risk management committee meeting minutes with seven days of such a meeting. A bank's board should also approve a risk appetite statement on a yearly basis within the first two months of the year.

The new risk management guidelines are effective immediately.